Corning Natural Gas Corporation Faces Apparent Violation of Financing Orders

Strategic Insights -

The New York State Department of Public Service issued a Notice of Apparent Violation to Corning Natural Gas Corporation, citing failure to comply with the terms of the 2017 Financing Order. The Corporation was instructed to provide loan term sheets by April 30, 2021, following a request from the Department's Acting Director, Jeffrey S. Hogan. The Corporation has submitted the required documents, including multiple M&T Bank term sheets and a Payment Protection program loan term sheet.

Key Takeaways:

  • Corning Natural Gas Corporation received a Notice of Apparent Violation from the New York State Department of Public Service for failing to comply with the 2017 Financing Order.
  • The Corporation was instructed to submit loan term sheets by April 30, 2021, in response to a request from Acting Director Jeffrey S. Hogan.
  • The submitted documents include multiple M&T Bank term sheets, covering loans in various amounts, including $29,000,000, $3,600,000, and $8,000,000.
  • The Payment Protection program loan term sheet is dated April 17, 2020, and is worth $970,900.
  • The Corporation's Vice President and CFO/Secretary-Treasurer, Charles A. Lenns, has been informed of the apparent violation and has been instructed to contact the Department with any questions or comments.

Statistics:

  • $29,000,000: The amount of the first M&T Bank term loan.
  • $3,600,000: The amount of the M&T Bank term loan dated August 10, 2018.
  • $8,000,000: The amount of the M&T Bank term loan dated June 24, 2020.
  • $970,900: The amount of the Payment Protection program loan term sheet dated April 17, 2020.
  • 8: The number of M&T Bank term sheets submitted by the Corporation.
  • 2: The number of Payment Protection program loan term sheets submitted by the Corporation.

Sources:

  • "Natural Gas Corporation" (letter dated April 27, 2021) from Corning Natural Gas Corporation (330 West William Street, P.O. Box 58, Corning, New York 14830-0058)
  • "Notice of Apparent Violation of Department of Public Service Financing Orders" (letter dated February 22, 2021) from Jeffrey S. Hogan, Acting Director, OAAF